Friday, February 17, 2012

PetroBakken to Sell Non-Core Saskatchewan Assets to Crescent Point -- The Williston Basin, But Not North Dakota, USA

This appears not to affect assets in the North Dakota Bakken, but they do describe it as "Bakken light oil."

Currently producing 2,900 boepd; 20,360 net acres.

At $75/bbl, that 2,900 boepd might represent about $80 million/year.

$300 million/20,360 net acres --> $15,000 acre.

This is what PetroBakken says:
  • $147,250 per flowing boe (January 2012 field estimate)
  • $40.50 per boe of gross proved plus probable reserves (excluding future development capital of
    $67 million)
  • 7 times annualized current cash flow
  • 5.5% of December 2011 Company production
And this:
The Bakken Business Unit will continue to represent a significant portion of our corporate asset base as this sale represents only 7% of the Business Unit’s land holdings and approximately 12% of its production. Assuming successful completion of this Transaction, our average working interest in our remaining Bakken Business Unit lands will increase from 82% to 86% and we will continue to have over 700 net drilling locations in the Business Unit, representing approximately 10 years of drilling inventory.
 I find the "flowing boe" value most interesting: $150,000/flowing bbl.

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